DOE to ease ‘emergency’ fuel pricing rules

MANILA, Philippines — The Department of Energy (DOE) is moving to relax mandated fuel pricing rules to give oil firms greater flexibility to adjust to volatile global prices and prevent losses, its top official said.

Following the declaration of a national energy emergency, the DOE began setting the maximum fuel price hikes and minimum rollbacks that companies may implement each week.

The policy, backed by the threat of legal action against non-compliant firms, is intended to protect the motoring public from excessive pricing amid record-high fuel costs.

Energy Secretary Sharon Garin, however, said the DOE is now seeing the need to “lift the emergency level of supervision” while continuing to safeguard consumer interests.

“It’s a balancing act, but we also have to consider that we don’t want these companies to operate at a loss and shut them down because we need their services,” Garin said in an interview.

She said the DOE has been in discussions with oil players on the next steps, hoping to reach a resolution this week.

Mixed pump adjustments are expected this week, with diesel prices likely to rise while gasoline is poised for a rollback.

Absent any easing of the current rules, oil companies will once again be required to follow the price adjustments prescribed by the DOE.

An industry source, who requested anonymity, told The STAR that oil players are proposing the DOE set a pricing range instead of mandating specific adjustments.

“Currently, oil companies have no choice but to implement what the DOE says. With the DOE releasing a range, any adjustment within that range will be acceptable,” the source added.

Garin said the DOE is open to the proposal and is considering it but noted that “we have computations that don’t seem to work.”

“It needs to be adjusted so that our consumers are not put at a disadvantage. We have to make sure that if we make adjustments, we still won’t make it difficult for our consumers,” the energy chief said.

Based on the latest available industry data, diesel in Metro Manila is currently priced at P67.14 to P85.32 per liter, while gasoline ranges from P67.64 to P104.74 per liter.